THE SENATE	S.B. NO.	2126
THIRTY-SECOND LEGISLATURE, 2024		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO SECURITY DEPOSITS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 521, Hawaii Revised Statutes, is amended by adding a new section to part IV to be appropriately designated and to read as follows:

"§521-   Security deposit alternatives. Upon a tenant's request, a landlord that requires a security deposit as a condition of a rental agreement pursuant to section 521-44(b), shall offer to accept at least one of the following in lieu of the required security deposit:

(1) Rental security insurance; provided that:

(A) The insurance provider is an approved carrier licensed by, and in good standing with, the insurance division of the department of commerce and consumer affairs;

(B) The coverage is effective upon the payment of the first premium and remains effective for the entire lease term; and

(C) The coverage provided per claim is not less than the amount the landlord requires for a security deposit; or

(2) A surety bond in an amount equal to the total security deposit.

Nothing in this section shall be construed as to limit any other provisions or requirements pursuant to section 521-44."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2040.

Report Title:

Security Deposit Alternatives; Rental Security Insurance; Surety Bond; Residential Landlord-Tenant Code

Description:

Requires a landlord to accept either rental security insurance or a surety bond in lieu of a traditional security deposit, upon a tenant's request. Takes effect 7/1/2040. (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.